Netflix could soon catch Amazon Prime

Netflix could soon catch Amazon Prime

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Cable TV industry have become increasingly difficult. Streaming services such as Amazon Prime and Netflix, on the other hand, are gaining popularity because users like to watch exclusive series and films. Also the possibility to consume the contents always and everywhere has made the offer very attractive for all age classes.

In the second quarter of 2017, the global number of Netflix subscribers rose to 104 million, breaking the 100 million mark for the first time. Compared to the previous quarter, Netflix gained 5.2 million new users, surpassing its forecast by two million. This inspired the investors, and the stock climbed to an all-time high. In this way, it gained 11 per cent in value.

In the current quarter, the company estimates to crack the 108-million mark. Netflix mainly produces its own content, especially popular series. Netflix alone can cost more than $6 billion in 2017, a long-term strategy to avoid expensive licensing fees.

In the statistics of Statista, it is reported that the US market with 51.9 million users is by far the largest single market in the world. If the trend continues, Netflix could soon catch Amazon Prime. The service from Amazon, unlike Netflix is not only a video streaming, but also on music streaming, books and favorable conditions during online shopping, which is why so far more people Amazon Prime use.

A survey by Leichtman Research Group, says that 54% of American adults rely on Netflix at home. And according to data Statista website, there are 126 million US homes.

Netflix claimed at the end of June, 103.95 million subscribers exactly, an increase of 5.2 million in three months, while it expected only 3.2 million more. The bulk of new subscribers (4.14 million) comes from the international, the group said in its letter to shareholders.

Earlier this week, it was revealed that the streaming giant now has more subscribers internationally than in the United States. Netflix expects to attract 4.4 million additional customers this quarter, including 3.7 million international. Netflix claimed at the end of June, 103.95 million subscribers exactly, an increase of 5.2 million in three months, while it expected only 3.2 million more. The bulk of new subscribers (4.14 million) comes from the international, the group said in its letter to shareholders.

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I am a lecturer at the University of Economics in Bratislava, department of Banking and International Finance. I have a Ph.D. academic degree, my dissertation was focused on major markets. Commodities and stock markets are also the main focus of my research and publication activities. I have approximately 10 years of investing experiences. My investments mostly focus on small- to mid-cap companies of energy sector, financial and technology.

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